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Peter Hain was under growing political pressure after an official Parliamentary “sleaze” inquiry was launched into his donations blunders.

Westminster’s Commissioner for Standards, John Lyon, ruled that the Work and Pensions Secretary had a “case to answer” amid calls for him to consider his position.

Mr Hain is already being probed by the Electoral Commission after admitting failing to disclose more than £103,000 in donations to his failed deputy Labour leadership bid.

It was also revealed that officials in his Neath constituency party will hold an emergency meeting to discuss the affair this week, while there were signs that his support among Labour MPs may be eroding.

Asked by reporters in London, Mr Hain stressed that he would “co-operate fully” with all those investigating his conduct. “I’ve been open and clear about this from the beginning when I discovered these donations had been made late,” he said.

Gordon Brown has restated his backing for the embattled Cabinet minister, insisting he was doing a “great job”.

However, in an interview with The Sun, the Prime Minister admitted that Mr Hain’s fate would be decided by the outcome of the inquiries.

“He took his eye off the ball and he has apologised,” Mr Brown said. “The matter must rest with the authorities, who will look at these matters.”

Labour MP for Norwich North, Ian Gibson, broke ranks by openly calling for his colleague to resign. “If I was in his position, I think I would resign,” he told BBC Radio 4’s World At One. “I think I would feel ashamed I had let the side down.”

Dr Gibson also said he was “revolted” that the Progressive Policies Forum think-tank appeared to have been established solely to channel thousands of pounds in funds to Mr Hain’s deputy leadership campaign.